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BREAKING STORY: Honda Suddenly Kills Fuelmaker In Stunning Move That Outrages CNG Movement

Edwin Black
Special from TheCuttingEdgeNews.com

The Plan
This continuing coverage of America’s lubricant turning-point arises from theThe Plan: How to Save America When the Oil Stops—or the Day Before(Dialog Press).

WASHINGTON, DC - April 6, 2009: Amidst charges that embattled American Honda is systematicallysuppressing its compressed same gas (CNG) conveyance program, the companyhas in a flash fueled that feeling close by throwing into bankruptcy itswholly-owned CNG refueling company, Fuelmaker.

Toronto-based Fuelmaker was arguably the lynchpin of CNG’s futureas a bridge solving to alternate fuel. The compact manufactured anddistributed the crucial refueling appliance that allowed home-based andfleet refueling of CNG vehicles, including the Honda Civic GX, heralded asthe “greenest automobile in America.”

FuelMaker PHILL element
Fuelmaker appliances at dwelling-place or at companies excised the order fortraditional neighborhood filler stations. The compact, dwelling-place garage-basedCNG refueler is called "Phill." The commercial form called theVehicle Refueling Appliance could quick crowd some vehicles. Some 14,000Fuelmaker devices about the earth are at current in a flash stranded byHonda’s action.

Fuelmaker employees, CNG producing leaders, and CNG advocates who learnedof the move on the weekend are all outraged. The details, pieced togetherby this reporter, are as follows:

Last Thursday, April 02, 2009, without notice, American Honda called itsloan to Fuelmaker, according to Fuelmaker and Honda employees known withthe facts. Honda in essence owned and controlled Fuelmaker because of aso-called “numbered corporation.” A “numberedcorporation, almost unheard of in the U.S., is a commercial entityespecially enabled beneath Canadian law that exists without a recognizablename, identified lone close by a number. Calling the multi-million dollar noteallowed American Honda to advance into a Canadian bankruptcy court and throwFuelmaker, its own alt-fuel company, into receivership. The well-knownreceivership compact Alvarez and Marsal was then called in to liquidateeverything as quick as possible.

That day, April 2, a lone Alvarez and Marsal receiver, MelanieMacKenzie, arrived at the companionship offices with the indispensable papers. AllFuelmaker employees were abruptly fired without severance or warning, andgiven fair a hardly hours to collect up their individual possessions and go away thepremises. All Fuelmaker operations were suspended without note todealers, clients or suppliers. All assets were at once upon a period placed on theauction bit representing liquidation.

“I believe it is unconscionable,” stated single shocked Fuelmakeremployee, who declined to be obsessed any designation published representing dread of retaliationfrom Honda. Explaining the dread of Honda, the labourer stated, “Idon"t confidence those guys. I don"t confidence them as afar as I can throw them. Theyhave lied to me every which way.” One labourer added, “Quitesimply, Honda has second-hand the bankruptcy courts to avoid paying its employeesseverance. We were all unqualifiedly blind-sided.”

An American CNG producing fountain-head who regularly works with Honda and hasdefended the companionship in the past, conceded, “It’s clear. Hondais doing their unsurpassed to cut back the CNG market. What else can I say.”A Canadian CNG producing fountain-head sent cross-border emails, obtained close by thisreporter, protesting, “Nothing has been communicated to customers andwe can anticipate that dealers desire before long be dealing with extremely irate customerswho cannot get parts,” adding, “This was handled extremely poorlyand all of the former 60 employees are left-hand with nothing.”

Torrance, California-based American Honda is the U.S. branch of thefabled Japanese automobile company. Honda’s glistening pen down of excellencewas acutely tarnished after widespread allegations that it was consciouslysuppressing its advanced Honda Civic GX, a CNG conveyance designed to workwith the home-refueling element manufactured close by Fuelmaker. The companionship refusedto make more than circular 90 Civic GX cars per month in 2008, andwould in the main vend those hardly cars to choose dealers in New York andCalifornia. A extensive listing of alt-fuel advocates lined up to buy the car,especially during the nerve-wracking triple-digit per barrel lubricant prices of2008. But Honda would not grow production.

In single much-publicized case, the Spokane Community College tried representing ayear to buy a single Honda GX to carriage a cadre of alt-fuel specialists tohelp America get away of oil. Honda adamantly refused to vend the schooleven single car. In answer to media revelations circular the affair, a seniorHonda chairman of the board posted snide remarks in a CNG conversation spaciousness which includedenough four-letter words to order multiple “expletivedeleted” notations close by the moderator. In a unconventional twist, the Hondaexec also mocked the assassination of President John F. Kennedy as bit ofan action to marginalize media reports. Later, Honda corporate spokesmanapologized representing the conduct.

Then, in an awkward news in late descend 2008, Honda internalcommunications were published showing the carmaker was artificiallymanufacturing a Honda GX deficit representing the summer of 2009. First the companysuspended GX producing altogether, then it announced it would doubleannual producing to 2,000 vehicles. But close by enforcing a secure quota, Hondaensured that a deficit would occur, which it acknowledged in a fax todealers. The companionship made unclouded it was refusing to build adequate vehicles tosatisfy the market-place order that had mushroomed as bit of the escalatingmovement to break apart the nationwide lubricant addiction.

Critics accuse Honda of bare coin Civic producing inasmuch as thecompany customarily sells more than 1.5 million vehicles annually, and in2008 would lone make 1000 CNG cars. Even although its sales plunged lastyear, Honda quiet sold 1,428,765 vehicles. There are more than 8 millionCNG vehicles worldwide, but lone Honda makes them in America.

Edwin Black
The identical judgment leveled against Honda representing refusing the build and sellcars was lodged against Honda-controlled Fuelmaker representing declining to sellthe Phill refueling units in most locales that wanted them. The combinationof no automobile and no refueler ensured that producing and sales weresuppressed. One chairman of the board in the Honda-Fuelmaker uniting with knowledgeof sales quipped, “Suppression? That"s True. I can"t relate you thenumber of times we could not vend outcome because the cars were not madeavailable.”

Critics be obsessed suggested that Honda refused to make more Honda GX unitsbecause as consumers fled to alternate vehicles, sales of thecompany’s most beneficial gas guzzler cratered. These included theRidgeline and the Pilot, both amongst the most tinder ineffective vehicles inthe nation. These models in some instances suffered more than a 40 percentdecline in single month during hindmost year’s lubricant charge run-up.

Honda’s behaviour was more challenged during a much-vaunted pushby T. Boone Pickens to grow same gas vehicles. Pickens’company, Clean Energy, tried to buy Fuelmaker representing $17 million, whichwould break apart the shackles imposed on the CNG market. But at the hindmost minute,the deal cut apart, reportedly because Honda refused to furnish theordinary financials required in due diligence.

“Honda wanted to vend the companionship to any of severalinvestors,” confirmed an labourer at the Honda-Fuelmaker combinationwith access to pecuniary information. Clean Energy was fair single of thefirms that showed interest, the labourer added. “But they alwaysscrewed up the negotiations. Honda attorneys at all times ended up pissing peopleoff.” The labourer asked that no designation be second-hand representing dread of retaliationby Honda, a same refrain of those interviewed representing this story.

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One disheartened Fuelmaker complex back up overseer sent an email,obtained close by this reporter, protesting to bankruptcy receiver MacKenzie,“We are convinced that Honda of America does not grasp orappreciate the collision of ceasing all FuelMaker activities withoutconsidering some class of contingency design representing existing users who requireparts and services to continue their cog until such period as they canmake alternate fuelling arrangements.”

In Ontario Canada alone, more than 300 FuelMaker stations attend to avariety of fleets, including such particular object off-road vehicles as iceresurfacers and forklifts. Many of these vehicles are exclusively fueled bynatural gas and “are completely dependant on the FuelMaker equipmentthat refuels them,” according to a Canadian Fuelmaker serviceemployee. More single thousands forklifts and 100 ice resurfacers desire beeffected. Ice resurfacers order refueling every two days. “If adefective refueling organized entire is not repaired in this period frame,” aFuelmaker help authority confirmed in a written assertion circulated todealers, then “ice grooming operations discontinue and municipalities haveno choice but to null tournaments, events and bookings representing their arenas.There is no alternate conveyance that can be second-hand to carry exterior the functionsof an ice resurfacer.” He added, “Forklifts carry approximatelyfour hours quality of tinder on board. There are frequently dozens of them infactories operation 24 hours per day. Immediate answer to breakdowns inforklift applications is critical. Without forklifts, works operationsgrind to a discontinue in extremely little order.” Ironically,” the emailpointed out, “Two Honda of Canada auto plants in Alliston and theirmain parts supplier Simcoe Parts Supply direct across the street, jointlyoperate close to 100 forklifts and build employ of four big FuelMakerrefueling stations.”

An email distributed close by a Fuelmaker labourer to CNG circles in NorthAmerica circular the effected Honda factories in Canada harshly chided Hondamanagement. “How ironic that Honda of America in their infinitewisdom,” stated the email, “is at current crippling two of their ownauto plants because they decline to employ accountable managing of theiraffairs!”

One Fuelmaker labourer reported circular conversations with shockedcustomers. “When they heard FuelMaker had gone bankrupt they wereabsolutely livid toward Honda of America that provisions representing extra partsand mend services had not been considered as bit of the winddown,” he stated.

According to a written assertion drafted above the weekend close by anexecutive in the Honda-Fuelmaker combination, and obtained close by thisreporter, “FuelMaker alone had three full-time help technicianscovering above 250 stations in Ontario. Each technician handled 2-3 servicecalls per day. Therefore between 3 PM Thursday afternoon when operations atFuelMaker ceased and now, Sunday morning, there are at least fifteen callsthat be obsessed gone unanswered and consequently fifteen facilities with dedicatednatural gas vehicles that are in grave bother RIGHT NOW! Ontariorepresents lone a fraction of the earth people of equipment. In twentyyears, FuelMaker manufactured above 13,000 compression units and sold themin more than thirty countries. Most of those units are quiet in operationtoday. The Ontario market-place represents less than 10% of the earth market-place soas you can imagine, what I am describing up above is also event all overthe world.”

Safety sources in Canada wondered if impermanent solutions to thedisappearance of extra parts and help would be seated an vaporizing hazard.“There is a grave risk,” wrote single fountain-head implicated inaddressing refueling safety, “that someone is thriving to cobbletogether a substandard countermeasure to a difficulty that arises because theycan"t get parts and their ease and vehicles are completely dependant ontheir FuelMaker refueling equipment.”

Several employees fearful above a safeness turning-point caused close by Hondacirculated a note calling representing a come to someone"s rescue design to come to someone"s rescue at least the serviceaspect. Even if no more refueling devices are produced, the ones exterior thereneed help and extra parts, stated an labourer not wishing to furnish aname so as not to endanger on-going efforts with Honda. One email askingfor a come to someone"s rescue appointment declared, “Time is of the essence. This meetingmust grip location as before long as possible. Please do your unsurpassed to build ithappen.”

Fuelmaker president John Lyon confirmed to this reporter,“Fuelmaker managing was bright that American Honda was irritating tosell its Fuelmaker furnish and intellectual possessions to a companionship that wouldprovide the synergies indispensable to move Fuelmaker to the next movement ofefficiency and profitability. This was communal knowledge.” But Lyonadded, “We were shocked to learn this week from a third communal gathering (notHonda) that American Honda was planning to place Fuelmaker into bankruptcyand vend the assets. I put one"s hand on badly representing the dedicated Fuelmaker employees whowere all terminated on Thursday without note or severance. Also I amconcerned circular the suppliers and Fuelmaker’s customers who are leftwithout any support. Hopefully someone desire perceive this as an chance andcome to the rescue. It is a sad daytime representing the NGV industry, the environmentand energy security,” Lyon concluded.

“This is a genuine setback representing the NGV industry,” agreedRichard Kolodziej, chairman of the board of the important CNG commerce group, Natural GasVehicles America. “Natural gas dwelling-place refueling is a significantbenefit representing residential customers. The concept is so compelling that we fullyexpect another maker to move ahead the market-place soon.”

Some Honda accountability partners held exterior desire that someway agreeable reasoningprevailed. “It is discouraging but I am not surprised,”asserted a elder chairman of the board with AutoNation, the country’s largestowner of new automobile dealerships, and a powerful back up of alternate fuelvehicles such as the Honda GX. “With the charge of gasoline at$2,” the AutoNation chairman of the board continued, “and the economy theway it is, things be obsessed changed.” But he added, “Everything forHonda does, they be obsessed a three-dimensional reason. When you deal with Honda you dealwith a considerate reasoned company.”

Ironically, almost all latchkey players contacted stated they had been keptin the unlit circular Honda’s plans representing Fuelmaker, including thedeclaration of bankruptcy. Many stated they lone knowledgeable of the bankruptcyfrom this reporter. This included latchkey executives at Fuelmaker in Toronto,senior alternate tinder program managers at Honda in California,knowledgeable producing experts, dealer sources, customers, and CNGadvocates.

Honda elder immorality president John Mendel, contacted at a dealer happening inLos Vegas, claimed he was not bright of the bankruptcy. He stated he wouldhave a corporate spokesman shout risk in within moments. No shout came. Whencontacted again, he hung up the phone after this journalist identifiedhimself.

Honda is scheduled to be current at the Alternative Fuel Vehicle InstituteNational Conference in Orlando on April 19-22. But no Honda fountain-head wouldconfirm whether the companionship was quiet attending. Alternative Fuel VehicleInstitute Director of Education and Business Programs Kimberly Taylor didnot answer to repeated emails and phone calls circular the conference. In thepast the appointment has been criticized representing being beneath the swell of leadingcorporate funding sponsors such as GM and Ford who be obsessed a pen down ofundermining alternate tinder vehicles.

A disconsolate Fuelmaker labourer offered a ending epitaph: “Phillscertainly are dead. The complete companionship is at current dead.” One chairman of the board inthe CNG earth that regularly works with Honda, added, “This suddenbankruptcy certainly plays into the concept that Honda is irritating to execute theCNG conveyance market.”

Edwin Black is the New York Times unsurpassed selling investigative originator ofIBM and the Holocaust, Internal Combustion and The Plan: How to SaveAmerica When the Oil Stops—or the Day Before (Dialog Press). Moreinformation circular The Plan can be establish at www.planforoilcrisis.com.